U.S.-China spat depresses global stocks

NEW YORK — Global stocks took small losses Monday after China reportedly pulled out of trade talks with the U.S. Industrial companies and banks suffered some of the worst declines among American stocks.

The U.S. and China officially began taxing larger amounts of each other’s goods Monday, and the Wall Street Journal reported that China pulled out of talks that could have led to a new round of negotiations to end the trade war.

The U.S. is now taxing another $200 billion in Chinese imports at a rate of 10 percent, and China added taxes of 5 to 10 percent on $60 billion in U.S. products. Oil prices jumped after OPEC decided not to produce more oil.

Technology and health care companies rose, leaving U.S. indexes only slightly lower.

“The market’s been remarkably resilient over the last couple of months while trade tensions were heating up,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

Sandven said the trade spat will endure past the midterm elections in November, but stocks are likely to keep rising because of strong earnings growth for U.S. companies, combined with low inflation and low interest rates.

The S&P 500 index fell 10.30 points, or 0.4 percent, to 2,919.37. The Dow Jones industrial average lost 181.45 points, or 0.7 percent, to 26,562.05. Both the S&P 500 and Dow set record highs last week.

The Russell 2000 index of smaller-company stocks dropped 7 points, or 0.4 percent, to 1,705.32. The Nasdaq composite rose 6.29 points, or 0.1 percent, to 7,993.25.

After a volatile stretch early this year, the S&P hasn’t risen or fallen 1 percent in a day since late June.

Sandven noted that this year’s stock gains have been concentrated in technology, retail and health care companies. That was the case Monday, as Apple gained 1.4 percent to $220.79 and drug and infant formula maker Abbott Laboratories advanced 3.5 percent to $71.44. Sandven said it would be an encouraging sign for the market if other sectors do better.

U.S. investors were occupied with other news. OPEC and key allies like Russia decided not to increase their oil output further. Production is falling in some OPEC nations, including Iran, which faces new sanctions from the U.S.

Benchmark U.S. crude gained 1.8 percent to $72.08 a barrel in New York while Brent crude, the international standard for oil prices, rose 3 percent to $81.20 a barrel in London, its highest price in more than three years.

Airlines and other transportation companies fell as investors anticipated they will have to pay higher prices for fuel.

Markets in Europe edged lower while Asian indexes took sharper losses. Germany’s DAX fell 0.6 percent, and the CAC 40 in France lost 0.3 percent. The FTSE 100 in Britain dipped 0.4 percent. Hong Kong’s Hang Seng index fell 1.6 percent and India’s Sensex gave up 1.5 percent. Markets in Japan and South Korea were closed for national holidays.